Coinbase discovers over 20 instances where the FDIC advised banks to pause or delay crypto-related services.
FDIC’s Pushback on Crypto Services
Coinbase recently found that the Federal Deposit Insurance Corporation (FDIC) advised banks to delay or refrain from crypto services in over 20 cases. This discovery adds tension between crypto firms and regulators as the FDIC continues to assess banks’ involvement in digital asset services.
Requesting a Pause on Crypto Services
Coinbase’s legal team uncovered several instances where the FDIC asked banks to pause their crypto services. The FDIC shared 23 documents in response to Coinbase’s Freedom of Information Act (FOIA) requests. However, the letters themselves remain unreleased.
Focus on Compliance and Safety
The FDIC letters, dated between March and October 2022, raised concerns about banks’ compliance with regulations and consumer protection standards. The FDIC sought more information before approving any crypto-related services.
Regulatory Concerns Raised by FDIC
In nearly every letter, the FDIC requested additional details to ensure the banks’ proposed crypto services met safety standards. These letters were directed to bank leaders, though the names of the banks were undisclosed.
Operation Chokepoint 2.0 Allegations
Coinbase’s Chief Legal Officer, Paul Grewal, described these letters as part of “Operation Chokepoint 2.0,” suggesting regulatory moves to curb financial access for crypto companies.
Coinbase’s Commitment to Transparency
Grewal emphasized that Coinbase will continue seeking clarity from regulators, saying, “The public deserves transparency, not an agency that’s working behind a bureaucratic curtain.”
Presidential Candidates on Crypto
Coinbase’s recent shareholder letter showed optimism about future U.S. leadership. Regardless of the November election outcome, Coinbase noted that both Vice President Kamala Harris and Donald Trump have expressed favorable views on crypto, marking a policy shift.
Conclusion: The Path Forward for Crypto Regulations
Coinbase’s discoveries shed light on the FDIC’s cautious approach to crypto services within banking. As both regulators and crypto advocates push for clarity, the upcoming election may further shape regulatory perspectives on digital assets.
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